Government extends energy bill support by three months ahead of ‘growth budget’ – Business Live | Business

Introducing: Energy support, which caps bills at £2,500, is extended by three months

Good morning and welcome to our ongoing coverage of companies, the financial markets and the global economy.

The UK government has expanded its support for households on their energy bills after pressure not to skyrocket bills and plunge many thousands of families into poverty.

Hours before Jeremy Hunt is due to announce the budget today, the Treasury Department has made a U-turn, confirming that the energy price guarantee will continue at its current level until the end of June.

The EPG, which caps a typical annual household bill at £2,500, should rise to £3,000 a year by the end of April.

Announcing the move this morning, the Treasury notes that energy bills will fall from July due to the drop in wholesale prices.

Chancellor Jeremy Hunt says:

“High energy bills are one of the biggest concerns for families, which is why we are keeping the energy price guarantee at the current level.

“With energy bills set to come down from July, this temporary change will close the gap and ease pressure on families while helping bring down inflation.

The turnaround was widely expected and will bring some relief to households already struggling with the cost of living.

Hunt had come under pressure from activists, charities and consumer champion Martin Lewis to extend EPG support. Citizen Advice had warned that without further support, millions of households would have faced a “disaster” from April onwards.

New – the Energy Price Guarantee will remain at £2,500 a year for a typical household until the end of June.

With energy bills set to fall from July, this change will bridge the gap, easing the pressure on families. pic.twitter.com/QjqEGciM9C

— HM Treasury (@hmtreasury) March 15, 2023

“,”url”:”https://twitter.com/hmtreasury/status/1635898628039385089″,”id”:”1635898628039385089″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”0a3be152-ed72-43d8-993e-f73e0925ab9c”}}”>

New – the Energy Price Guarantee remains at £2,500 per year for a typical household until the end of June.

With energy bills set to come down from July, this change will close the gap and ease the pressure on families. pic.twitter.com/QjqEGciM9C

— HM Treasury (@hmtreasury) March 15, 2023

Hunt will present the budget at 12:30 p.m., outlining the government’s tax and spending plans.

It is billed as the “budget for growth” and includes measures aimed at getting more people into work.

It is expected to include a £4bn expansion of free childcare for one and two year olds in England. This will give parents of one and two year olds an extra 30 hours a week and will increase funding for the existing free childcare scheme for three year olds by £288m by 2024-25.

New measures to encourage business investment and offset some tax changes coming into effect in April that will hit businesses are also expected.

Hunt has been considering replacing the special deduction with a new ‘full expense’ scheme which allows 100% of qualifying UK capital expenditures to be written off against taxable profits in the year in which they are incurred.

But the Chancellor could also face a Tory backbench revolt over the budget as he pushes a rise in corporate tax from 19% to 25%.

The Daily Telegraph reports there is a growing backlash, with Conservative MPs fearing a “chilling effect on the broader economy” if the rise is not abandoned.

Tomorrow's Budget coincides with the Cheltenham racing festival – some Tories claimed that such a clash ought to be a resigning issue for Gordon Brown when it occurred back in 2004 … pic.twitter.com/VoXgCJgAVW

— James Heale (@JAHeale) March 14, 2023

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Tomorrow’s Budget coincides with the Cheltenham Racing Festival – some Tories claimed such a clash should be a retirement issue for Gordon Brown when it took place back in 2004… pic.twitter.com/VoXgCJgAVW

— James Heale (@JAHeale) March 14, 2023

The agenda

  • 9am GMT: IEA monthly report on the oil market

  • 12:30 GMT: Jeremy Hunt presents the budget

  • 12:30 GMT: US PPI Producer Price Inflation Report

  • 1.30pm GMT: The Office for Budget Responsibility releases its UK Economic and Fiscal Outlook

The three-month extension of the energy price guarantee (EPG) at its current £2,500 level will save a typical household around £160, the Government says.

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Prime Minister Rishi Sunak said:

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“We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall.

\n

“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”

\n

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[It’s important to remember that the EPG caps the unit cost of energy, not the total bill]

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Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

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The UK government has extended its support for households on their energy bills, following pressure not to push up bills and plunge many thousands of families into poverty.

“,”elementId”:”8e057374-d5a2-446f-8877-ec70794649db”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Hours before Jeremy Hunt is due to announce the budget today, the Treasury has performed a U-turn and confirmed that the energy price guarantee will continue at its current rate until the end of June.

“,”elementId”:”2db35895-d810-499b-991e-84932b28371b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The EPG, which limits a typical annual household bill to £2,500, had been due to rise to £3,000 per year at the end of April.

“,”elementId”:”c36a925e-71a7-4db3-b2d5-11348fdb0550″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Announcing the move this morning, the Treasury points out that energy bills are set to fall from July, due to the drop in wholesale price.

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Chancellor Jeremy Hunt says:

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“High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.

\n

“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.

\n

“,”elementId”:”fbf0ff7a-7433-45b6-829d-c70b90e1c620″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The about turn had been widely expected, and will relieve some pressure on households already struggling the cost of living.

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Hunt had faced pressure from campaigners, charities and the consumer champion Martin Lewis to extend the EPG support. Citizens Advice had warned that without further support, milllions of households would have faced ‘catastrophe’ from April.

“,”elementId”:”ecf22cce-d3e3-4b78-927c-c5012baf7f4a”},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

New – the Energy Price Guarantee will remain at £2,500 a year for a typical household until the end of June.

With energy bills set to fall from July, this change will bridge the gap, easing the pressure on families. pic.twitter.com/QjqEGciM9C

— HM Treasury (@hmtreasury) March 15, 2023

“,”url”:”https://twitter.com/hmtreasury/status/1635898628039385089″,”id”:”1635898628039385089″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”fb27d569-e706-4535-83d6-c33051f03f3b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Hunt will deliver the budget at 12.30pm, outlining the government’s tax and spending plans.

“,”elementId”:”e54f5506-d44f-407c-b9b5-812175ae14b3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

It will be billed as a “Budget for growth”, and include measure designed to help more people into work.

“,”elementId”:”219d13d6-c695-4d11-a30a-bdb11a3633ba”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

It’s expected to include a £4bn expansion of free childcare for one- and two-year-olds in England. This which will provide an extra 30 hours a week to parents of one- and two-year olds, and increase funding by £288m by 2024-25 for the existing programme of free childcare for three year-olds.

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New measure to encourage business investment, and offset some tax changes taking effect in April that will hit firms, are also expected.

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Hunt has been examining whether to replace the super-deduction with a new “full expensing” system, which would let 100% of qualifying capital expenditure in the UK to be written off against taxable profits in the year it is incurred.

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But the chancellor could also face a Tory back-bench revolt over the Budget as he pushes ahead with a rise in corporation tax from 19% to 25%.

“,”elementId”:”3376bde8-c3d6-4e17-b557-017d82835f12″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The Daily Telegraph reports there is a growing backlash, with Conservative MPs fearing a “chilling effect on the whole economy” if the rise is not abandoned.

“,”elementId”:”08d1e73d-f650-4707-850e-72e219d92a91″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”

Tomorrow's Budget coincides with the Cheltenham racing festival – some Tories claimed that such a clash ought to be a resigning issue for Gordon Brown when it occurred back in 2004 … pic.twitter.com/VoXgCJgAVW

— James Heale (@JAHeale) March 14, 2023

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The agenda

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    \n

  • 9am GMT: IEA’s monthly report on the oil market

  • \n

  • 12.30pm GMT: Jeremy Hunt to deliver the Budget

  • \n

  • 12.30pm GMT: US PPI producer price inflation report

  • \n

  • 1.30pm GMT: Office for Budget Responsibility publishes its UK Economic and Fiscal Outlook

  • \n

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key events

By keeping the Energy Price Guarantee at its current level of £2,5000 from April to June, households will be protected from Ofgem’s price cap.

The Ofgem price cap, which limits how much energy companies can charge, will fall to £3,280 in April from £4,279 for the January-March quarter. But the EPG effectively overrides this for households.

Ofgem’s price cap is expected to fall again in July – with data from consultancy Cornwall Insight suggesting it could fall to £2,100/year for the average summer household.

The Treasury explains how falling wholesale energy prices have helped cushion the cost of the support:

In the autumn statement, the Chancellor announced the EPG would rise to £3,000 on April 1, with the Government then expecting to borrow £12bn to fund that support.

Since then, energy prices have fallen by 50%, reducing borrowing to fund energy support by two-thirds to £4 billion.

Sunak: Maintaining the energy price guarantee gives security

The three-month extension of the Energy Price Guarantee (EPG) at its current level of £2,500 will save a typical household around £160, the government says.

Prime Minister Rishi Sunak said:

“We know people are worried about rising bills in April, so we are keeping the energy price guarantee at current levels until the summer, when gas prices are expected to fall, to give people a little peace of mind.

“Keeping energy costs low is part of our plan to help hard-working families with the cost of living and cut inflation in half this year.”

[It’s important to remember that the EPG caps the unit cost of energy, not the total bill]

Introducing: Energy support, which caps bills at £2,500, is extended by three months

Good morning and welcome to our ongoing coverage of companies, the financial markets and the global economy.

The UK government has expanded its support for households on their energy bills after pressure not to skyrocket bills and plunge many thousands of families into poverty.

Hours before Jeremy Hunt is due to announce the budget today, the Treasury Department has made a U-turn, confirming that the energy price guarantee will continue at its current level until the end of June.

The EPG, which caps a typical annual household bill at £2,500, should rise to £3,000 a year by the end of April.

Announcing the move this morning, the Treasury notes that energy bills will fall from July due to the drop in wholesale prices.

Chancellor Jeremy Hunt says:

“High energy bills are one of the biggest concerns for families, which is why we are keeping the energy price guarantee at the current level.

“With energy bills set to come down from July, this temporary change will close the gap and ease pressure on families while helping bring down inflation.

The turnaround was widely expected and will bring some relief to households already struggling with the cost of living.

Hunt had come under pressure from activists, charities and consumer champion Martin Lewis to extend EPG support. Citizen Advice had warned that without further support, millions of households would have faced a “disaster” from April onwards.

New – the Energy Price Guarantee will remain at £2,500 a year for a typical household until the end of June.

With energy bills set to fall from July, this change will bridge the gap, easing the pressure on families. pic.twitter.com/QjqEGciM9C

— HM Treasury (@hmtreasury) March 15, 2023

“,”url”:”https://twitter.com/hmtreasury/status/1635898628039385089″,”id”:”1635898628039385089″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”1725e69e-a4d7-4d28-b9d4-37ee951914c0″}}”>

New – the Energy Price Guarantee remains at £2,500 per year for a typical household until the end of June.

With energy bills set to come down from July, this change will close the gap and ease the pressure on families. pic.twitter.com/QjqEGciM9C

— HM Treasury (@hmtreasury) March 15, 2023

Hunt will present the budget at 12:30 p.m., outlining the government’s tax and spending plans.

It is billed as the “budget for growth” and includes measures aimed at getting more people into work.

It is expected to include a £4bn expansion of free childcare for one and two year olds in England. This will give parents of one and two year olds an extra 30 hours a week and will increase funding for the existing free childcare scheme for three year olds by £288m by 2024-25.

New measures to encourage business investment and offset some tax changes coming into effect in April that will hit businesses are also expected.

Hunt has been considering replacing the special deduction with a new ‘full expense’ scheme which allows 100% of qualifying UK capital expenditures to be written off against taxable profits in the year in which they are incurred.

But the Chancellor could also face a Tory backbench revolt over the budget as he pushes a rise in corporate tax from 19% to 25%.

The Daily Telegraph reports there is a growing backlash, with Conservative MPs fearing a “chilling effect on the broader economy” if the rise is not abandoned.

Tomorrow's Budget coincides with the Cheltenham racing festival – some Tories claimed that such a clash ought to be a resigning issue for Gordon Brown when it occurred back in 2004 … pic.twitter.com/VoXgCJgAVW

— James Heale (@JAHeale) March 14, 2023

“,”url”:”https://twitter.com/JAHeale/status/1635595466405564417″,”id”:”1635595466405564417″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”c4c1a53c-6a37-4276-8f0b-c97dd5f272f5″}}”>

Tomorrow’s Budget coincides with the Cheltenham Racing Festival – some Tories claimed such a clash should be a retirement issue for Gordon Brown when it took place back in 2004… pic.twitter.com/VoXgCJgAVW

— James Heale (@JAHeale) March 14, 2023

The agenda

  • 9am GMT: IEA monthly report on the oil market

  • 12:30 GMT: Jeremy Hunt presents the budget

  • 12:30 GMT: US PPI Producer Price Inflation Report

  • 1.30pm GMT: The Office for Budget Responsibility releases its UK Economic and Fiscal Outlook

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